bankruptcy questions

[Turtle]

Hello i have been following this website for quite a while but this is my first post, i have many questions re bankruptcy, here are just a few;-

1. If before bankruptcy the house is signed over to partner what happens[?]

2. When bank account are frozen what happens to funds[?]

3. What if there is no equity in house as it has a 85% interest only mortgage[?]

4. If a charging order has been placed on property what does this mean if sale only covers repayment of mortgage[?]

5. What happens to charging order[?]

Cheers

T [8)][8)]

[MelanieGiles]

Hi Turtle and welcome to the forum

1 If the property has equity, and you sign over your share to your partner for no consideration, the Trustee will apply to have this transaction overturned in favour of your creditors.

2 The funds form part of the bankruptcy estate and are used to pay your crediors.

3 If you have an 85% LTV mortgage, then you presumably have 15% equity? Of course this will be diluted if you have other secured charges.

4 The balance owed to the charging order creditor will be dealt with as an unsecured creditor.

5 It is dismissed upon the sale of the property or an earlier repayment.

Hope my answers help!

[Turtle]

Thanks Melanie,
But if the property was signed over say 18 months prior to BR will the trustee still over turn the transaction?
Where do wages then get paid into if all bank accounts are frozen?
I don't see anthing being left to satisfy the charging order so is this then writen off?
Also if by some miracle the property is saved from sale how long will this charging order accrue interest if the answer is yes what happens then if after say 4-5 years the property is sold?[?]
T

[chris.g]

Hiya turtle, the OR will check for the sale or transfer of any assets in the 5 year before br. You can have a basic account to have wages etc paid in and d/d's to be paid out. The charge would be written off but if the property isn't sold the interest will continue to accrue until the property is sold.

[MelanieGiles]

Chris has answered your questions admirably - and I am left with nothing to add!!